In the U.Ok., the collapse of SVB Financial dropped at thoughts its personal monetary turmoil about 5 months in the past.
Like U.Ok. pension funds had been in October, SVB’s bond portfolio was caught out by the large rise in rates of interest. In each cases, the nation’s central financial institution stepped in to backstop their respective monetary techniques. One key distinction was that the U.Ok. disaster was exacerbated by way of derivatives, whereas SVB’s difficulties stem from an absence of derivatives use.
The…
Source web site: www.marketwatch.com
